JAMB Accounting 2015 Objective — Question 45
Question 45 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2015 Objective paper, with the correct answer and a full explanation.
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Which of the following entries is affected by a department when goods are charged to it at selling prices?
- A. A Stock account is debited
- B. Purchases account is debited
- C. Stock account is credited
- D. Mark-up account is debitedCorrect
Explanation
When goods are charged to a department at selling price, a Mark-up account must be debited to adjust for the difference between cost price and selling (mark-up) price.
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